The main data sources for BOP compilation are:
o The NBS - for data on external trade, services, direct and portfolio investment;
o the banking system (i.e., licensed banks, foreign exchange offices and NBM departments);
o government institutions (e.g., the State Chancellery, the MOF, the Ministry of Economy, the Ministry of Education, the Ministry of Foreign Affairs and European Integration, the Bureau for Migration and Asylum, the National Commission for Financial Markets etc.);
o some entities, both public and private – for data on transportation and travel;
o surveys from representatives of international organizations accredited in Moldova.
These data are supplemented with data from the international transaction reporting system (ITRS). Under this system two categories of respondents are obliged to report to the NBM:
· domestic licensed banks that undertake international transactions both for their own accounts and on behalf of their clients;
· resident enterprises that have opened foreign accounts outside the domestic banking system.
The international transactions of the NBM are also reported to the Reporting and Statistics Department through the ITRS.
A. Goods: The customs declarations database is the main source for data compilation on international trade in goods both by legal entities and individuals. Adjustments for undeclared imports / exports of goods by individuals and exports via duty-free shops are made by the IASD. Additional information on goods acquired in ports by carriers is collected by the NBM from the ITRS. The net exports of goods under merchanting are compiled by comparing payments / receipts for exports / imports of goods recorded in the ITRS database with the customs declarations database, for each economic entity. Transactions of intermediation in international trade with goods involving residents /nonresidents’ payments / receipts when goods do not cross the country’s border but are purchased by residents and then sold abroad are registered on a net basis.
B. Services: The NBS's consolidated statistical database on legal entities' reports is the main source for the data on transportation, communications, insurance, and recreational services. The customs declarations database is the main source for data on manufacturing services on physical inputs owned by others. The NBM obtains data on all other services mainly from the ITRS. Additional information is collected by the NBM from surveys submitted by legal entities, companies, and institutions that provide services.
Manufacturing services on physical inputs owned by others -The customs declarations database is the main source for data about the value added in the process of manufacturing, which represents a fee paid/received for manufacturing services.
Maintenance and repair services– the main data source is ITRS.
Transportation services. The NBS information is supplemented by the NBM with:
· ITRS data;
· customs declarations database;
· data from the surveys of some legal entities;
· data on fees charged for transit pipeline transportation through Moldova;
· data derived from the conversion of imports from CIF prices into FOB prices. The (CIF - FOB) adjustment to the imports of goods is added to the imports of freight services (not including transportation of goods for processing).
The NBM makes additional estimations on passenger transportation based on the reports by the State Chancellery and representative offices of international institutions on transportation expenditures within technical assistance projects.
Travel. The main data source is the ITRS, which is supplemented with the following estimates:
· living expenses of Moldovan employees working abroad in the respective country;
· travel services pertaining to residents / nonresidents studying or participating in training courses abroad / in Moldova are estimated. These estimates are made on the basis of the number of individuals (students, pupils, interns, etc.), country, duration of stay, type and value of tuition, scholarships offered to residents abroad and, respectively, to nonresidents in the Republic of Moldova;
· travel expenses of nonresidents/residents are estimated on the basis of data concerning the sale / purchase of foreign currency by foreign exchange offices;
· the value of travel expenditures by nonresident experts within technical assistance offered to the country;
· travel expenses of persons involved in shuttle trade are estimated considering the duration of stay and the country (geographic area), based on the number of declarations submitted to the Customs Service concerning the imports of goods by individuals;
· data on duty-free shops from the customs declarations database are used for estimating the value of goods purchased by nonresidents when leaving the country.
· ITRS data are used as basis for calculating the value of construction services, financial, information and computer services, licenses and royalties, other business services, and government services (partly);
· financial intermediation service indirectly measured (FISIM) charges are estimated as margins between interbank market reference interest rates and effective interest rates payable on loans and deposits;
· the value of postal and currier services, of telecommunications services, of audiovisual and cultural services is calculated based on NBS data on the external trade in services;
· the exports of insurance services are calculated based on NBS data, while the imports of insurance services are estimated by applying a coefficient to the value of insurance premiums paid by residents to foreign insurance companies, obtained from the ITRS. Additionally, estimations are made for vehicle insurance services based on the number of vehicles imported by individuals;
· government services rendered to nonresidents are calculated on the basis of data about the flow of currency in the accounts of Moldovan embassies and consulates abroad;
· part of the value of government services is estimated from the amount of technical assistance provided by international organizations and foreign governments to the Republic of Moldova.
C. Primary income:
Compensation of employees. Estimates for the compensation of Moldovan employees working for foreign employers are made using a personal remittances estimation model, which uses ITRS data on money transfers from abroad in favor of individuals, and also information from different institutions: Cadaster and Land Relations Agency, real estate agencies, Bureau of Migration and Asylum, licensed banks, some NBM departments, the NBS.
The estimates for the compensation of foreign employees who work in Moldova are based on ITRS data, the estimation of aid received by the Republic of Moldova from other governments and international organizations within international cooperation, and on data from the Bureau of Migration and Asylum on the number of foreigners who work under short-term contracts.
Investment income. Income on direct, portfolio, other investment and reserve assets
Income on equity (on direct and portfolio investments). The main sources of information are:
· for dividends paid to/received from non-residents:
· banking sector - dividends due to payment to non-residents – data from the Banking Supervision Department of the NBM;
· all other sectors – ITRS;
· estimations for dividends received from non-residents;
· for reinvested earnings - the NBS data on retained earnings for companies with foreign or joint capital.
Interest.Data on the interest payable/ receivable within intercompany lending and on governmental debt securities service are obtained from the Debt Management and Financial Analysis System (DMFAS) and supplemented with data from the ITRS.
Income on other investment.Data on income payable on external debt are obtained from the DMFAS and the MOF reports on public debt service, income receivable on bank deposits – from the ITRS. Income on reserve assets – data are obtained from the NBM’s Bank Operations Department.
Other primary incomeis compiled using ITRS data.
D. Secondary income:
Data are derived from reports and records of:
- the MOF - data on fees paid to international organizations, and data on voluntary donations disbursed in favor of budgetary institutions;
- State Chancellery Aid Management Platform database, the MOF and the ITRS - data on current international cooperation (including technical assistance - TA) provided by foreign governments and international organizations. Estimates of the technical assistance value are based on the budget projected for each TA project;
- the Ministry of Education - for the estimates of scholarships granted to Moldovan students by foreign governments and to foreigners by the Moldovan Government;
- customs declarations database - data on humanitarian aid in kind and estimates of goods purchased by residents as gifts when leaving the country, based on the customs declarations database for duty–free shops;
- the ITRS - data on receipts and payments of different types of current transfers, including transfers in favor of individuals (personal remittances estimation model), current taxes on income, wealth, etc.
- the NBS data – for the estimates of net nonlife insurance premiums and nonlife insurance claims, and for the estimates of the value of employees’ professional training.
Estimates of personal transfers are made using the personal remittances estimation model.
E. Capital account.
Data are compiled on the basis of:
- the ITRS - gross acquisitions / disposals of non-produced nonfinancial assets;
- the MOF reports on public debt management - data on public debt forgiveness;
- the MOF - data on governmental grants disbursed under capital investment projects;
- State Chancellery Aid Management Platform database and the ITRS – estimates of the value of other investment projects;
- the NCFM (National Commission for Financial Markets) – data on donations and inheritances between residents and foreign investors provided from secondary securities market;
- personal remittances estimation model – capital transfers between households.
F. Direct investment:
The basic data source for direct investment statistics is the set of individual joint ventures’ reports on foreign direct investment in equity and retained earnings collected by the NBS on a quarterly basis and sent to the NBM for processing. Individual data received from the NBS are supplemented with data from the ITRS and the National Commission for Financial Markets. Data on foreign direct investment (FDI) in equity are cross-checked with legal entities’ balance sheets and annexes to them on an annual basis. Data on FDI and retained earnings in the banking sector are provided by the Banking Supervision Department of the NBM. Data on reinvested earnings in other sectors are estimated on the basis of NBS quarterly statistical report on foreign investment in the economy of the Republic of Moldova (1-Invest), legal entities’ balance sheets and annexes to them. Data on direct investment – debt instruments include debt positions between affiliated enterprises on loans and trade credits. Data on intercompany loans are derived by the NBM from the DMFAS database supplemented with ITRS data and are reconciled quarterly with the statistical report 1-Invest and with the data from the legal entities' balance sheets on an annual basis. Debt positions between affiliated enterprises on trade credits are derived from legal entities’ balance sheets and annexes to them and from the reports of legal entities - monopolies in imports of strategic goods - on the debt for imports of energy resources to foreign direct investors. Nonresidents’ investment in real estate in Moldova is determined on the basis of ITRS data. Data on direct investment abroad are estimated on the basis of ITRS data.
H. Portfolio investment: The NBM compiles data on portfolio investment liabilities on the basis of information received from the NBS on individual statistical data on foreign investment and reinvested retained earnings in joint ventures (report 1-Invest), the National Commission for Financial Markets, DMFAS, information on state securities, held by non-residents, submitted by the Market Operation Division of the NBM and the ITRS. Data on portfolio investment assets in the form of debt securities of deposit-taking corporations are derived from the report on open foreign exchange positions of licensed banks submitted by the Foreign Exchange Operations Division of the NBM, supplemented with ITRS data. The ITRS is the main data source for statistics on portfolio investment assets – debt securities - other sectors.
I. Financial derivatives. Data on financial derivatives are collected from the ITRS.
J. Other investment
Trade credits and advances include:
Advance payments by and to non-residents and credits extended directly by the suppliers of goods and services to their non-resident customers - annual data are calculated on the basis of general consolidated data from the legal entities' balance sheets, collected by the NBS, and quarterly data - on the basis of the comparison of payments / receipts recorded in the ITRS for imports / exports of goods to the customs declarations database data;
trade credits arising from barter transactions in goods of non-equivalent value are estimated on the basis of external trade statistics;
Loans. Data on liabilities in the form of loans for all institutional sectors are produced by the NBM on the basis of the DMFAS, administered by the MOF (public and publicly guaranteed debt of the private sector) and by the NBM (publicly non-guaranteed debt of the private sector). DMFAS data are supplemented with ITRS data for deposit-taking corporations except central bank, economic agents from other sectors, and legal entities' reports on their direct accounts abroad.
Currency and deposits. These data (external assets/liabilities to non-residents) for deposit-taking corporations except central bank, are derived directly from the reports of licensed banks to the NBM and are cross checked with balance sheets on a quarterly basis. Other sectors' currency and deposits assets are calculated based on the legal entities' reports on their direct accounts abroad. The NBM makes estimates of households’ foreign exchange savings flows outside the national banking system based on the ITRS data, on cash payments in foreign currencies for imports of goods by individuals, compensation of employees paid in cash and other sources.
Other accounts receivable/payable. This item includes information on arrears that comprise deferred payments of dividends to non-residents, liabilities to non-residents on transactions with investment etc. The main data sources are the ITRS, the report on transactions in securities in the secondary market involving non-residents, banks’ financial statements and NBS consolidated reports.
SDR allocations– the main source is the DMFAS and the ITRS (the NBM).
K. Reserve assets:
Data are prepared on the basis of the daily reports presented by the Banking Operations Department of the NBM. The data provided are detailed so that the IASD is able to calculate daily flows exchange rate changes, price changes.
All data go through validations with the related sources. Individual records with high values are cross-checked with the ITRS. The necessary follow-up is done either to correct data, if misreported, or to obtain data, if missing.
Intermediate results are checked against various alternative data sources and estimates. The collection of data from multiple sources provides the IASD the opportunity to validate statistical outputs.
The behavior of time series is cross-checked with the related series/indicators if available. Financial flows are reconciled with changes in positions. Whenever surveys or administrative data are used, they are cross-checked with the ITRS results.
Errors and omissions are monitored quarterly at the end of each compilation period as an indicator of unrecorded or misreported transactions. The compilation of separate regional statements allows for an in-depth analysis of discrepancies.